Cricket News

Byju’s financial woes deepen as Indian Cricket Board takes ed-tech giant to NCLT

In Short:

• 2019- Indian Cricket Board and Byju’s sign a jersey sponsorship contract
• Byju’s agreed to pay the Board 4.61 crore per bilateral match and Rs 1.51 crore per match in a major event
• December 2022- Byju’s exited the contract
• January 2023- The Board issued a general notice to Byju’s about dues amounting to INR 158 Cr
• December 2023- The Board takes up the matter with the National Company Law Tribunal
• NCLT issues notice to Byju’s

In a significant development, the National Company Law Tribunal has issued a notice to Think & Learn Pvt Ltd, the entity operating Byju’s online educational services, following a petition filed by the Indian Cricket Board. Indian Cricket Board claims Byju’s defaulted payment exceeding Rs 158 crore, stemming from their former sponsorship agreement which came into existence back in 2019.

At the time, Oppo, a mobile manufacturing firm had transferred the sponsorship to Byju’s. The latest development in the Byju Indian Cricket Board Sponsorship Controversy has sent shockwaves through the Indian startup ecosystem and raises questions about Byju’s financial stability and its future growth trajectory.

Why NCLT Issued Notice To Byjus?

The NCLT notice represents a serious challenge for Byju’s. The tribunal’s decision will determine the fate of the company and its ability to continue operating as usual. The outcome of this case will have significant implications not only for Byju’s but also for the broader Indian edtech industry.

The order from NCLT states that a period of two weeks is allowed for the respondent, which in this case is Byju’s, to file a reply. An additional one week is then granted to the Indian Cricket Board to file a rejoinder if need be. The NCLT has scheduled the next hearing in this case for December 22nd, 2023, giving Byju’s time to prepare their response to the Indian Cricket Board’s allegations.

The NCLT’s decision to admit the Indian Cricket Board’s petition against Byju’s marks yet another chapter in the edtech giant’s recent turmoil. This development comes amidst a string of challenges faced by the company, including allegations of overcharging parents, employee lawsuits and misleading marketing practices.